What do you think would be a feasible strategy (or combination strategies) that would balance pharmaceutical innovation incentives and lower consumer costs?
Based on the readings I’m attachin in the instructions document, write an individual essay arguing your point of view on the tradeoff between pharmaceutical innovation (as patent system and lack of price controls in the U.S. preserve financial incentives to invest in drug development) and consumer cost (higher/unaffordable drug prices).
EPP-2
Module 4 – Healthcare Economics
In-Class Learning Activity #1
18 February 2020
This learning activity begins as a group activity and then, is submitted as an individual exercise. It
will be completed in class.
What do you think would be a feasible strategy (or combination strategies) that would balance
pharmaceutical innovation incentives and lower consumer costs?
Based on the readings below, write an individual essay arguing your point of view on the tradeoff
between pharmaceutical innovation (as patent system and lack of price controls in the U.S. preserve
financial incentives to invest in drug development) and consumer cost (higher/unaffordable drug
prices).
?
From the drug manufacturers’ perspective and societal perspective: read the following
article estimating the economic (opportunity) cost of drug development:
DiMasi, J. A., Hansen, R. W., & Grabowski, H. G. (2003). The price of innovation: new
estimates of drug development costs. Journal of Health Economics, 22(2), 151-185.
https://www.sciencedirect.com/science/article/pii/S0167629602001261?via%3Dihub
–
?
From the patient perspective and societal perspective: read the following opinion articles
from the NY Times on patients skipping or rationing essential medications due to their high
costs, frequent changes in drugs covered due to negotiations between drug manufacturers
and PBMs:
The New York Times (2019) “We either buy insulin or we die.” The high (and rising) cost of
insulin is forcing diabetics to risk their lives to get the drug.
https://www.nytimes.com/video/opinion/100000006488930/insulin-pricecosts.html?action=click&module=RelatedLinks&pgtype=Article
?
The New York Times (2019) It’s Time for Pharmaceutical Companies to Have Their
Tobacco Moment.

?
The New York Times (2019) Sound, Fury and Prescription Drugs.

?
The New York Times (2019) The Insulin Wars.

This In-Class Activity is worth 7 points.
Rubric: You will have to write an opening statement paragraph illustrating your point of view
(25%) and argument with three (3) reasons illustrated using evidence from the readings in one
paragraph each (25% each).
Due: Tuesday, 18 February 2020 at 17:00 (5:00 pm) {TODAY}

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